[Federal Register Volume 59, Number 97 (Friday, May 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12270]


[[Page Unknown]]

[Federal Register: May 20, 1994]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 27

[Docket No. 94-09]
RIN 1557-AB33

 

Fair Housing Home Loan Data System

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is issuing 
a final rule amending its Fair Housing Home Loan Data System (FHHLDS). 
This final rule enhances the OCC's ability to use data collected under 
the Home Mortgage Disclosure Act (HMDA) in fair lending examinations 
and reduces recordkeeping requirements on national banks that are 
currently required to maintain duplicative information under both the 
FHHLDS and the HMDA. In order to relieve duplicative recordkeeping for 
those national banks, this final rule replaces the current FHHLDS 
monthly recordkeeping requirement with the HMDA Loan/Application 
Registers already maintained by national banks, which will be required 
to be updated on a quarterly basis. In order to improve the OCC's 
ability to use HMDA data in fair lending examinations, this final rule 
requires that all national banks subject to the HMDA, including those 
banks not subject to the FHHLDS, maintain information on the HMDA Loan/
Application Registers on a quarterly basis. National banks that are not 
subject to the HMDA requirements will continue to be subject to the 
original FHHLDS recordkeeping requirement, which will be updated 
quarterly under this final rule. The intended effect of this final rule 
is to improve the OCC's supervision of national banks while also 
reducing a duplicative recordkeeping burden on affected national banks.

EFFECTIVE DATE: June 20, 1994.

FOR FURTHER INFORMATION CONTACT: Larry Riedman, Fair Lending 
Specialist, Compliance Management Division, (202) 874-4446; or F. John 
Podvin, Jr., Attorney, Bank Operations and Assets Division, (202) 874-
4460, Office of the Comptroller of the Currency, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: The OCC is amending 12 CFR part 27, 
pursuant to 12 U.S.C. 93a, to improve its ability to use HMDA data 
in fair lending examinations of national banks and reduce burden on 
national banks. The final rule requires that HMDA Loan/Application 
Registers be updated quarterly, requires the reason(s) for loan 
denial be indicated on the HMDA Loan/Application Registers and 
relieves the requirement to maintain duplicative records for those 
national banks that currently maintain records under both the 
FHHLDS and the HMDA, 12 U.S.C. 2801 et seq.

Background

    On November 2, 1979, the OCC published a final rule (1979 final 
rule) in the Federal Register (44 FR 63084), which implemented 12 CFR 
part 27. The 1979 final rule provided a basis for a more effective fair 
housing monitoring program for home loans. The 1979 final rule 
established new recordkeeping requirements and a data collection system 
for monitoring national bank compliance with the Fair Housing Act 
(Title VIII of the Civil Rights Act of 1968), 42 U.S.C. 3601 et seq. 
and the Equal Credit Opportunity Act, 15 U.S.C. 1691 et seq.
    In August 1989, the Financial Institutions Reform, Recovery and 
Enforcement Act of 1989 (FIRREA), section 1211, Public Law 101-73, 103 
Stat. 183 (12 U.S.C. 2803) amended the HMDA. On December 15, 1989, the 
Federal Reserve Board published a final rule (FRB final rule) in the 
Federal Register (54 FR 51356). The FRB final rule implemented a 
revised version of 12 CFR part 203 (Regulation C), which is the 
implementing regulation for the HMDA. Under the FRB final rule, certain 
national banks and their majority-owned mortgage banking subsidiaries 
must maintain individual loan application registers and forward them 
annually to the appropriate OCC office.
    In response to FIRREA and the FRB final rule, the Office of Thrift 
Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) 
amended their regulations concerning home loan activity to make them 
similar to Regulation C.

OCC Proposed Rule

    On May 10, 1993, the OCC issued a notice of proposed rulemaking, 
pursuant to 12 U.S.C. 93a, to amend the FHHLDS. See 58 FR 27484. In its 
proposed rule, the OCC recognized that national banks subject to the 
recordkeeping requirements of both the FHHLDS and the HMDA were 
required to maintain duplicative information on home loan activity. The 
OCC proposal sought to relieve the duplicative recordkeeping burden on 
these banks without affecting banks that are not subject to the HMDA, 
but currently are subject to the monthly recordkeeping requirement in 
the FHHLDS.
    In its proposed rule, the OCC sought to amend the FHHLDS to relieve 
the duplicative recordkeeping requirement for banks subject to both 
FHHLDS and HMDA by replacing the recordkeeping requirement on monthly 
home loan activity, currently located at Sec. 27.3(a), with the 
existing requirement in the HMDA and Regulation C. Regulation C 
generally requires that national banks (and their majority-owned 
mortgage banking subsidiaries) with an office or branch located in a 
metropolitan statistical area (MSA) or primary MSA, as defined by the 
Office of Management and Budget (OMB), and with total assets greater 
than $10 million as of December 31 of the preceding calendar year, 
maintain information on home loan activity.
    Under the proposal, national banks subject to the HMDA would 
maintain the information in a format similar to that prescribed under 
Regulation C (Loan/Application Register or LAR), except that (1) if a 
loan is denied, the reason(s) for denial are required to be entered on 
the Loan/Application Register; and (2) all the required information is 
entered on the Loan/Application Register within 30 calendar days after 
final disposition of the loan application.
    The OCC proposal retained the existing monthly recordkeeping 
requirements in the FHHLDS for national banks that are not subject to 
the HMDA and Regulation C. The OCC proposal also retained the remaining 
provisions of the FHHLDS, which authorize the Comptroller to use his or 
her discretion in requiring national banks to maintain a Fair Housing 
Inquiry/Application Log or to complete Home Loan Data Submission Forms 
if the Comptroller has reason to believe that a national bank is 
engaging in discriminatory practices. Also, several clarifying 
amendments to Sec. 27.7 were proposed. These changes made Sec. 27.7 
conform with the proposed amendments to the recordkeeping requirements 
in Sec. 27.3(a). The proposal also stated that the OCC is studying the 
FHHLDS to determine what data are most effective in identifying 
discrimination in home lending, to identify the most effective and 
least burdensome method for collecting home loan data, and to develop 
an improved statistical model that will enhance its ability to analyze 
home loan data.
    The OCC invited public comment on any aspect of the proposed rule 
for a 60 day period ending on July 9, 1993. The OCC specifically sought 
comment on the issue of whether the recordkeeping burden imposed by the 
proposal was minimal. The OCC received 44 comment letters from banks, 
bank holding companies, trade groups and the OMB. Forty-one commenters 
expressed general support for the proposed rule; however, several of 
these same commenters objected to specific provisions of the proposal. 
Two commenters made recommendations without expressing support for or 
opposition to the proposed rule. The OMB did not express support for or 
opposition to the proposed rule.
    Pursuant to 12 U.S.C. 93a, this final rule revises the proposed 
rule based on the 44 comment letters and makes other changes to clarify 
the requirements in the proposed rule.

Review of Comments

    The following is a discussion of the issues raised by the 
commenters, the OCC's responses to those issues, and a summary of 
changes made to the proposed rule.

A. Update Requirement

    The proposed rule stated that a national bank subject to the HMDA 
was required to record all information on the HMDA-LAR within 30 
calendar days after the final disposition of the loan application 
(i.e., the application is denied, withdrawn, or the loan closes).
    Commenters in favor of the 30-day update requirement included both 
small and large national banks. Generally, these banks indicated that 
they were already updating their LARs within the 30-day time period. 
One comment letter from a bank trade association agreed and stated that 
the 30-day update requirement would not impose a significant additional 
burden on banks.
    Commenters opposed to the 30-day update requirement also included 
small and large national banks. These commenters suggested that the OCC 
extend the 30-day period to various lengths of time, including: 45 
days, 60 days, and quarterly. These commenters stated that they would 
have to change their current recordkeeping procedures in order to 
comply with the 30-day update requirement, resulting in an increase in 
recordkeeping burden. Some of the specific problems or concerns cited 
by these commenters include the following:
     Banks with many branches generally submit home loan data 
monthly to a central location for entry onto the bank's central LAR. In 
order to meet the 30-day requirement, branches would have to submit the 
information bi-weekly.
     Some banks do not input the geo-coding information (i.e., 
state, county, MSA and census tract codes) because it is time consuming 
and can be managed better by automated systems operated by third-party 
specialists. Because this process is expensive, it is done on a 
quarterly basis. These banks also stated that it would be very 
expensive to bring this process in-house.
     Banks will have a problem assuring data accuracy on a 30 
day, loan-by-loan basis. A longer updating time frame will allow more 
time for editing and correcting the data.
     A group of commenters recommended that the OCC consider 
the impact the 30-day update requirement may have on small national 
banks that do not have automated reporting systems.
    In response to these comments and in the interest of minimizing 
recordkeeping burden on national banks, the OCC replaced the 30-day 
update requirement with a quarterly update requirement in the final 
rule. The final rule states that a national bank subject to the HMDA is 
required to record all information on the HMDA-LAR within 30 calendar 
days after the end of each calendar quarter.
    The OCC also changed the update requirement for non-HMDA banks that 
are required to maintain the FHHLDS's monthly home loan activity 
report. Under the proposed rule, non-HMDA banks that receive 50 or more 
home loan applications a year were required to maintain home loan data 
in a report that was updated monthly, within 10 working days after the 
close of the month, in a format consistent with the bank's 
recordkeeping procedures. Under this final rule, that report is updated 
quarterly, within 30 calendar days after the end of each calendar 
quarter, in a format consistent with the bank's recordkeeping 
procedures. This change will make both HMDA banks and non-HMDA banks 
subject to the same updating requirement.

B. Reasons for Denial

    Under the proposed rule, a national bank subject to the HMDA was 
required to maintain the reason(s) for denying a loan application.
    The commenters in favor of the reasons for denial requirements 
generally stated that they were already voluntarily providing the 
reason(s) for denial. Several commenters also stated that it was a good 
idea to require the reasons for denial in order to better monitor the 
bank's lending activity and compliance with fair housing statutes.
    The commenters opposed to the reason(s) for denial requirement 
provided various reasons for their opposition. One commenter stated 
that the nine HMDA codes are too limited to fully explain the reason(s) 
for the denial and that the true reason(s) for the denial can be found 
by examiners in the loan file. Another commenter stated that the FDIC 
does not require the reason(s) for denial in its regulation. Finally, 
another commenter preferred the treatment under Regulation C, which 
states that providing the reason(s) for denial is optional. See 12 CFR 
203.4(c).
    After considering these comments, the OCC determined that the final 
rule will retain the requirement that national banks maintain the 
reason(s) for denying a loan application for the following reasons. The 
OCC believes that requiring the reason(s) for denial will improve both 
the OCC's and national banks' monitoring of lending activity and 
compliance with fair housing statutes. The OCC notes that the OTS also 
requires the reason(s) for denial in its regulation, codified at 12 CFR 
528.6(d)(2)(viii).
    Several commenters suggested that the OCC include provisions in the 
final rule requiring national banks to use the nine HMDA codes when 
entering the reason(s) for denial. Another commenter suggested that the 
OCC devise a key of various reason(s) for denial based upon a list used 
in adverse action notices under the Equal Credit Opportunity Act. Based 
on these comments, the OCC determined that HMDA codes are needed for 
consistency. The final rule requires national banks to use the nine 
HMDA codes provided in Regulation C.

C. Recordkeeping Burden Comments

    In the proposed rule, the OCC specifically requested comments on 
the issue of whether the recordkeeping burden imposed by the proposal 
was minimal. Commenters stating that burden would be increased under 
the proposal were substantially outnumbered by commenters stating that 
burden would be decreased.
    Many commenters stated generally that the proposal would reduce 
recordkeeping burden. Several commenters referred to the reduction in 
staff hours and resources used in recording home loan information. 
Another commenter stated that those resources could be used in other 
areas if the proposal was adopted.
    Commenters stating that burden would be increased generally focused 
on the 30-day update requirement and the burden associated with 
changing procedures to meet the proposed time period. The OCC changed 
the 30-day update requirement in the proposed rule to a quarterly 
update requirement in the final rule to alleviate the potential burden 
increase identified by these commenters.

D. Accuracy of the Data

    While the proposed rule was silent on the issue of data accuracy, 
several commenters were concerned about this issue. One commenter 
stated that currently the bank employed procedures to check the 
accuracy of the data annually, just before the bank must report its 
HMDA data. The commenter stated that the 30-day update requirement 
would require a significant change in the bank's procedures in order to 
ensure that the data are accurate. Another commenter suggested that a 
bank should only be held to a standard of reasonable diligence and good 
faith as to the accuracy of the data prior to the annual filing.
    The OCC believes that updating quarterly rather than monthly will 
reduce the burden of ensuring the accuracy of the data entered onto the 
LAR. The OCC notes that Regulation C already contains a provision 
relating to data accuracy. Regulation C provides that an error in 
compiling or recording loan data is not a violation of the HMDA or 
Regulation C if it was unintentional and occurred despite the 
maintenance of procedures reasonably adapted to avoid such errors. See 
12 CFR 203.6(b). The OCC believes that this standard is adequate and 
does not need to be restated. National banks subject to the HMDA that 
do not have this type of procedure in place should develop a procedure 
to meet this standard.

E. Compliance Alternatives

    Under the proposed rule, national banks subject to the HMDA could 
not comply with the monthly recordkeeping requirement by completing the 
monthly home loan activity report in Sec. 27.3(a)(2). Similarly, non-
HMDA national banks could not comply with the monthly recordkeeping 
requirement by maintaining a HMDA-LAR in accordance with the 
requirements in Sec. 27.3(a)(1).
    One commenter suggested that all banks be given an alternative to 
comply with the FHHLDS monthly recordkeeping requirement by using 
either the HMDA-LAR or the monthly home loan activity report. Two other 
commenters suggested that non-HMDA banks be allowed to record their 
monthly home loan activity in the HMDA-LAR format in order to take 
advantage of available on-line automated systems for LAR preparation 
rather than requiring them to maintain a handwritten monthly home loan 
activity report.
    The OCC believes that not all banks should be given a compliance 
alternative, particularly in light of the change to a quarterly update 
requirement in the final rule. However, the OCC believes that national 
banks not subject to HMDA should be allowed to comply with the 
quarterly recordkeeping requirement by maintaining either the monthly 
home loan activity report or the HMDA-LAR, in accordance with this 
final rule. This alternative will allow non-HMDA national banks that 
are subject to the FHHLDS to take advantage of available on-line 
automated systems for LAR preparation. The final rule reflects this 
change.

F. Frequency of Reporting

    The proposed rule addressed only maintenance of home loan data and 
did not include provisions on the filing or reporting of the data. One 
bank was concerned that, while not stated as a purpose of the proposal, 
the increased processing and editing of the LAR could be the foundation 
for increasing the frequency of filing the HMDA data from the current 
annual requirement. According to the commenter, increased filing ran 
the risk of presenting an unrealistic snapshot of the bank's lending 
performance.
    The quarterly recordkeeping requirement in Sec. 27.3(a) is a 
records maintenance requirement and not a reporting requirement. The 
reporting requirement for the HMDA is located in Regulation C at 12 CFR 
203.5(a). Changes in the frequency of reporting or filing HMDA data, if 
any, would be made to Regulation C, a FRB regulation.

G. Retroactivity

    One commenter recommended that the final rule be promulgated on a 
retroactive basis, effective January 1, 1993. The OCC declines to 
accept the commenter's recommendation. While the OCC believes that the 
final rule reduces recordkeeping burden, certain national banks must be 
given time to change their procedures to comply with these 
requirements. Therefore, the final rule will become effective June 20, 
1994.

H. Differences Between the FHHLDS and HMDA

    Five commenters pointed out differences between the FHHLDS and the 
HMDA. One commenter submitted two exhibits detailing differences in 
coverage and information requirements. Another commenter suggested that 
the two systems should be subject to the same reporting standards. A 
third commenter suggested that the definition of ``home loan'' be the 
same for both regulations. Another commenter suggested that the loans 
covered in 12 CFR 202.13(a) should be used as a guide for the FHHLDS. 
Finally, one commenter pointed out that the FHHLDS does not have a 
mechanism to deal with cases where a mail or telephone applicant for a 
loan declines to provide information regarding race or sex. The 
commenter pointed out that Regulation C has this type of mechanism.
    As noted in the proposed rule, the OCC is studying the FHHLDS to 
determine what data are most effective in identifying discrimination in 
home lending, to identify the most effective and least burdensome 
method for collecting home loan data, and to develop an improved 
statistical model that will enhance our ability to analyze home loan 
data. The OCC is considering, but chose not to implement these 
commenters' suggestions into this final rule because of the necessity 
and importance of enhancing the HMDA data and reducing regulatory 
burden as soon as possible. However, the issues raised by the 
commenters will be considered further in the context of the OCC's 
ongoing study of the FHHLDS. After the study is complete, the OCC 
expects to publish in the Federal Register a notice of proposed 
rulemaking to explain any further proposed changes to the FHHLDS.

I. The OMB Comment

    In an official comment, the OMB stated that ``the OCC should revise 
12 CFR 27.3(b)(1)(xx) and 12 CFR 27.4(c)(5) so that the race and ethnic 
categories in its regulations are consistent with OMB Statistical 
Policy Directive No. 15, `Race and Ethnic Standards for Federal 
Statistics and Administrative Reporting.''' The effect of the suggested 
revisions is to change the way the regulation refers to various racial 
and ethnic groups. The OCC determined that the suggested technical 
revisions are in keeping with the intent of the proposal. Therefore, 
the OCC has adopted OMB's suggested revisions of Secs. 27.3(b)(1)(xx) 
and 27.4(c)(5) and has made conforming changes to Appendices II, III, 
and IV.

Paperwork Reduction Act

    The collection of information contained in this final rule has been 
submitted to the Office of Management and Budget (OMB) under control 
number 1557-0159 in accordance with the Paperwork Reduction Act of 1980 
(44 U.S.C. 3504(h)).
    For those banks required to submit Home Loan Data Submission Forms, 
pursuant to Sec. 27.7, the reporting burden for the estimated 13 banks 
filing reports will average approximately 100 hours annually, varying 
by the size and activity of the bank. The recordkeeping burden for the 
estimated 3,750 banks maintaining records will average approximately 
1.3 hours annually.
    Comments concerning the accuracy of these burden estimates and 
suggestions for reducing burden should be directed to the Office of the 
Comptroller of the Currency, Legislative, Regulatory, and International 
Activities, Attention: 1557-0159, 250 E Street SW., Washington, DC 
20219, and the Office of Management and Budget, Paperwork Reduction 
Project (1557-0159), Washington, DC 20503.

Regulatory Flexibility Act

    It is hereby certified that this regulation will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, a regulatory flexibility analysis is not required. This 
regulation relieves an unnecessary duplicative recordkeeping burden on 
banks that are subject to the recordkeeping requirements of both the 
FHHLDS and the HMDA.

Executive Order 12866

    The OCC has determined that this regulation is not a significant 
regulatory action.

List of Subjects in 12 CFR Part 27

    Civil rights, Credit, Fair housing, Mortgages, National banks, 
Reporting and recordkeeping requirements.

Authority and Issuance

    For the reasons set out in the preamble, part 27 of chapter I of 
title 12 of the Code of Federal Regulations is amended as set forth 
below:

PART 27--FAIR HOUSING HOME LOAN DATA SYSTEM

    1. The authority citation for part 27 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 12 U.S.C. 1 et seq., 93a, 161, 481, and 
1818; 15 U.S.C. 1691 et seq.; 42 U.S.C. 3601 et seq.; 12 CFR part 
202.

    2. In Sec. 27.3, paragraphs (a) and (b)(1)(xx) are revised to read 
as follows:


Sec. 27.3  Recordkeeping requirements.

    (a) Quarterly recordkeeping requirement. (1) A bank that is 
required to collect data on home loans under part 203 of this title 
shall present the data on Federal Reserve Form FR HMDA-LAR or in an 
automated format in accordance with the instructions, except that:
    (i) A bank shall maintain the reason(s) it denied a loan 
application, using the codes provided in part 203 of this title; and
    (ii) A bank shall record all information required by this paragraph 
and part 203 of this title within 30 calendar days after the end of 
each calendar quarter.
    (2) A bank that receives 50 or more home loan applications a year, 
as measured by the previous calendar year, and that is not required to 
collect data under paragraph (a)(1) of this section, shall record and 
maintain for each decision center the following information on home 
loan activity:
    (i) Number of applications received for each of the following: 
Purchase; construction-permanent; refinance.
    (ii) Number of loans closed for each of the following: Purchase; 
construction-permanent; refinance.
    (iii) Number of loans denied for each of the following: Purchase; 
construction-permanent; refinance.
    (iv) Number of loans withdrawn by applicant, for each of the 
following: Purchase; construction-permanent; refinance.
    (3) The information required to be maintained under paragraph 
(a)(2) of this section shall be updated quarterly, within 30 calendar 
days after the end of each calendar quarter, in a format consistent 
with the bank's recordkeeping procedures.
    (4) A bank exempted under paragraph (a)(2) of this section shall be 
covered by that requirement beginning the month following any quarter 
in which their average monthly volume of home loan applications exceeds 
four applications per month. Banks which are subject to this paragraph 
may discontinue keeping this information beginning the month following 
two consecutive quarters in which their average monthly volume of home 
loan applications drops to four or fewer applications per month. A bank 
which is otherwise exempted under this paragraph may be required upon 
notification received from the Comptroller, to record and maintain such 
information where there is cause to believe that the bank is not in 
compliance with the fair housing laws based on prior examinations and/
or has substantive consumer complaints, among other factors.
    (5) A bank required to maintain information under paragraph (a)(2) 
or (a)(4) of this section may choose to comply with the quarterly 
recordkeeping requirement by maintaining information in accordance with 
paragraph (a)(1) of this section.
    (b) * * *
    (1) * * *
    (xx) Race/national origin of applicant(s) using the categories: 
American Indian or Alaskan Native; Asian or Pacific Islander; Black, 
not of Hispanic origin; White, not of Hispanic origin; Hispanic; Other.
* * * * *
    3. In Sec. 27.4, paragraph (c)(5) is revised to read as follows:


Sec. 27.4  Inquiry/Application Log.

* * * * *
    (c) * * *
    (5) Race/national origin of the inquirer(s) or applicant(s) using 
the categories: American Indian or Alaskan Native; Asian or Pacific 
Islander; Black, not of Hispanic origin; White, not of Hispanic origin; 
Hispanic; Other. In the case of inquiries, this item shall be noted on 
the basis of visual observation or surname(s) only. In the case of 
applications, the information shall be obtained pursuant to 
Sec. 27.3(b)(2).
* * * * *
    4. In Sec. 27.7, paragraph (b), the introductory text for paragraph 
(c), and paragraph (d) are revised to read as follows:


Sec. 27.7  Availability, submission and use of data.

* * * * *
    (b) Prior to a scheduled bank examination, the Comptroller may 
request the information maintained under Sec. 27.3(a). A bank required 
to maintain information under Sec. 27.3(a)(2) shall submit the 
information to the Comptroller on the form prescribed in appendix I of 
this part. A bank which is exempt from maintaining the information 
required under Sec. 27.3(a) shall notify the Comptroller of this fact 
in writing within 30 calendar days of its receipt of the Comptroller's 
request.
    (c) If, upon review of the information maintained under 
Sec. 27.3(a), the Comptroller determines that statistical analysis 
prior to examination is warranted, the bank will be notified.
* * * * *
    (d) If there is cause to believe that a bank is in noncompliance 
with fair housing laws, the Comptroller may require submission of 
additional Home Loan Data Submission Forms. The Comptroller may also 
require submission of the information maintained under Sec. 27.3(a) and 
Home Loan Data Submission Forms at more frequent intervals than 
specified in paragraphs (b) and (c) of this section.

    5. A heading is added preceding Appendix I to read as follows:

Appendixes to Part 27

    6. Appendix II is revised to read as follows:

Appendix II--Information for Government Monitoring Purposes

    The following language is approved by the Comptroller of the 
Currency and will satisfy the requirements of 12 CFR part 27. It may be 
inserted to complete the ``Information for Government Monitoring 
Purposes'' section of the Residential Loan Application Form (FHLMC Form 
65/FNMA 1003) or may be used separately. This information may also be 
provided orally by the applicant.
    The following information is requested by the Federal Government if 
this loan is related to a dwelling, in order to monitor the lender's 
compliance with equal credit opportunity and fair housing laws. You are 
not required to furnish this information, but are encourage to do so. 
The law provides that a lender may neither discriminate on the basis of 
this information, nor on whether you choose to furnish it. However, if 
you choose not to furnish it, under Federal regulations this lender is 
required to note race and sex on the basis of visual observation or 
surname. If you do not wish to furnish the above information, please 
initial below.

Borrower

    I do not wish to furnish this information (initial)________.

Race/National Origin

    {time}  American Indian or Alaskan Native
    {time}  Asian or Pacific Islander
    {time}  Black, not of Hispanic origin
    {time}  Hispanic
    {time}  White, not of Hispanic origin
    {time}  Other (specify)________

Sex

    {time}  Female
    {time}  Male

Co-borrower

    I do not wish to furnish this information (initial)________.

Race/National Origin

    {time}  American Indian or Alaskan Native
    {time}  Asian or Pacific Islander
    {time}  Black, not of Hispanic origin
    {time}  Hispanic
    {time}  White, not of Hispanic origin
    {time}  Other (specify)________

Sex

    {time}  Female
    {time}  Male

BILLING CODE 4810-33-P
    6. Appendix III is revised to read as follows:

TR20MY94.003


BILLING CODE 4810-33-C
    7. Appendix IV is revised to read as follows:

TR20MY94.004


TR20MY94.005

BILLING CODE 4810-33-C
    Dated: May 16, 1994.
Eugene A. Ludwig,
Comptroller of the Currency.
[FR Doc. 94-12270 Filed 5-19-94; 8:45 am]
BILLING CODE 4810-33-P